For solution number 10, can you explain how do we know the fixed cost is $85,500 per month and the variable cost is $2485.42 per case please? Thank you.
Operating Expenses 5 $ $ 5 Salaries and Wages Employee Benefits Supply Expense-da Vind Supply Expense Other Lease Expense Maintenance Expense Depreciation Expense Allocated Hospital Expenses 9,500.00 2.325.00 20.000.00 5.000.00 62.000.00 14,000.00 2.500.00 10.000.00 $ $ $ $ 125,325.00 The salaries and wages related to da Vinci series are the support personnel which include RN's, Medical Assistants, etc. during the procedure Employee benefits are related to the support personnel of the da Vinci procedures. The supply expense other relates to expenses associated with the surgical procedures done by the da Vinci but are not directly for the da Vinci mention lines, etc.). The expensein Page Sofa the monthly lease for the da Vinci. Maintenance expenses the support agreement to maintain the da Vinci Depreciation expenses are for other equipment located within the de Vincere Allocated Hospital Expenses are fred overhead expenses that are incurred and would be absorbed by other departments if de Vino surgeries did not our For the purposes of the analysis, management has determined the following Table Average Cases Per Month 12 Average Revenue percase $ 6.500.00 As part of the overall discussion concerning the daVino surgical system, management contemplating the new technological advances in the item as well as the fact that the single sending Give the tuation, management is evaluating the current number of procedures, an expansion of the robotic surgical ystem with addition of an additional surgeon, and the lease for a new system Page of Tables New Robot Cost 52.500,000.00 Cost of Financing 525 Lease Term (Years) 4 Average Cases Per Month Average Revenue per case 5 6,500.00 9. Determine the monthly payment for the new lease for the da Vinci robot 10. Auming that other citing variable and fand costs cover for the next years (Table except for new lease amount and that this is an operating as what is the NPV of da Vinci robot Investment ing 12descontrate. The value of the da Vind at the end of these will be $500,000 Solution 10: The value of the da Vinci at the end of the lease will be $500,000. Fixed cost is $85,500 per month, variable cost is $2485 42per case. Discount rate - 12% Comments Average cases per month Average Revenue per case Salvage Value Revenue 1 2 3 4 20 20 20 20 6500 6500 6500 6500 500000 1,560,000.00 1.560,000.00 1,560,000.00 2,060,000.00 -20'6500'12 Fixed costs 1,026,000.00 1,026,000.00 1,026,000.00 1,026,000.00 Variable costs 596,50080 596,500 80 596,50080 596,500 80 2485 42 2012 Lease payment 69428138 694,28138 694.28138 69428138 -578567812 Total Costs 2,316,78218 2,316,782,18 2,316,782,18 2,316,782.18 Fixed Costs + Variable Costs Lease Expenses Net Income (756,782.18) (756,78218) (756,782.18) (256,782.18) Revenue - Total Costs Year Net Income PV PV 1 (756.78218) (756,78218//(1+12%) ($675,69838) 2 (756.78218) (756,782181/(1+12%) (5603,30212) 3 (756,78218) (756,78218/(+12% ($538,662.61) 4 (256,78218) (256,782 187/(1+12%) ($163,189.72) Total PV ($1,980,852.83)
